Current cost estimates put the development of 1 kilometer of Magline tracks at $4million (metropolitan) and at about $150,000 - $250,000 per vehicle depending on size. This is drastically less than rail transport and the advantages of frictionless travel also mean less wear-and-tear on both vehicles and tracks increasing longevity.
It has long been understood since the introduction of transit in North America that it also served to increase property values. Other bi-products of transit allow for increased development densities and commerce opportunities, thereby further increasing ridership and in turn the fare income of the transit line.
We are advocating Land Value Capture (LVC) as a financing model. LVC is an alternative to financing though operating savings, government grants, or loans. LVC would allow for funding based on the future valuation of property areas that the Magline would be built in.
Typically, such an increase in property valuation has gone strictly to developers and land-owners. LVC allows the local community to capture this future value and use it for projects that directly benefit local economy and infrastructure.